Rapid7 Announces Fourth Quarter and Full-Year 2024 Financial Results

Core Insights - Rapid7, Inc. reported a strong performance in 2024, achieving $840 million in Annual Recurring Revenue (ARR) and over $150 million in free cash flow, indicating solid growth and operational efficiency [2][4]. Financial Performance - ARR increased by 4% year-over-year, reaching $839.8 million as of December 31, 2024 [3][4]. - Total revenue for the year was $844 million, a 9% increase from $777.7 million in 2023 [4]. - Product subscriptions revenue also grew by 9% year-over-year, totaling $808.9 million [4]. - The company reported a GAAP operating income of $35 million for the full year, a significant recovery from a loss of $84.3 million in the previous year [4][5]. - Non-GAAP operating income for the year was $164 million, up from $102.2 million in 2023 [4][5]. Customer Metrics - The number of customers increased to 11,727, up 2% from 11,526 in 2023 [3]. - ARR per customer rose to $71.6 thousand, reflecting a 2% increase from $69.9 thousand in the prior year [3]. Profitability and Cash Flow - GAAP net income for the fourth quarter was $2.2 million, compared to $19.1 million in the same quarter of 2023 [5]. - Free cash flow for the year was $154 million, demonstrating strong cash generation capabilities [4][5]. - The company maintained a GAAP gross margin of 70% for the year, consistent with the previous year [3]. Business Highlights - Rapid7 launched its Exposure Command platform and expanded its Managed Detection and Response services, enhancing its value proposition to customers [2][7]. - The company received the "Security Vendor of the Year" award at the CRN Channel Awards 2024, highlighting its contributions to the IT security sector [7]. - Recent product enhancements included support for Microsoft security telemetry and AWS Resource Control Policies, improving threat detection capabilities [7]. Guidance for 2025 - For the first quarter of 2025, Rapid7 anticipates ARR between $870 million and $890 million, with revenue projected between $207 million and $209 million [8]. - Full-year 2025 guidance includes expected non-GAAP income from operations between $125 million and $135 million, and non-GAAP net income per share between $1.72 and $1.85 [8].